During January 2022 , before the financial statements for the year ended 31 December 2021 had been finalised, a number of events took place. 1. Rainbird's board announced a plan to discontinue one of its operations and dispose of the plant. The loss on disposal is estimated at $2 million. 2. The employees of the operation to be discontinued commenced a case against the company for constructive dismissal. The total cost could be $3 million. 3. A legal case for which Rainbird had provided $1.7 million at 31 December 2021 to cover possible damages was unexpectedly settled in its favour. 4. One of Rainbird's warehouses was destroyed by fire and half of the inventory on hand at 31 December 2021 , valued at $2.5 million, was destroyed. Which one of the above events would require an adjustment to the financial statements as at 31 December 2021 in accordance with IAS 10 Events after the reporting period? Explain your